South Africa’s Sibanye Gold’s net earnings for the year ended December had surged 16 percent to $364 million despite material production disruptions in the second half of the year, the JSE-listed gold miner said on Friday.
It said as a result of material production disruptions in the latter half of the financial year, 85 per cent of the net earnings were generated in the first half of the year.
In the 2012 financial year, the group produced 38.059 kilograms (1.22 million ounces) of gold compared with 45.005 kilograms (1.45 million ounces) in the 2011 financial year.
“The 15 per cent production decline was mainly due to illegal industrial action, which resulted in up to six weeks of lost production and a fire at the Kloof-Driefontein Complex (“KDC”) Ya Rona shaft,” Sibanye said in a statement.
“As a result, KDC and Beatrix produced 165.200 ounces and 58.100 ounces less respectively, than in the equivalent period in 2011.”
It reported that gold reserves of 13.5 million ounces as of 31 December 2012 and resources of 74.3 million ounces. Earlier this week, management said partial production had resumed at Beatrix 4 Shaft (previously the Oryx Mine).
Sibanye Gold, listed on Johannesburg and New York Stock Exchanges, suspended operations at Beatrix 4 Shaft on Wednesday last week after a fire damaged a significant part of Beatrix 4 Shaft.
Beatrix management has isolated and sealed off the affected area. Carbon monoxide and carbon dioxide levels confirm that there is no leakage on the seals, the company said in a statement.
“The morning shift resumed operations in the unaffected working areas and crews from the affected area have been redirected to gold recovery activities in older working areas,” it said.
The fire, which affected 2 700m2 of the Zone 5 production area, had not yet been extinguished and management was unsure when it would be able to resume operations in that area or the extent of the damage. The extent of the damage may result in partial sterilisation of the ore body, the company said.
